Assurance Co. of America v. Adbar, L.C.

The Missouri “valued policy” statute provides that an insurer of property damaged by fire “shall not be permitted to deny that the property insured thereby was worth at the time of the issuing of the policy the full amount insured.” Mo. Ann. Stat. § 379.140. A “builders risk” policy is a common form of fire insurance for buildings under construction in which the policy declares the completed value of the budding but the insured pays a reduced premium in exchange for lesser amounts of coverage prior to completion. It is settled that the Missouri courts do not construe § 379.140 as requiring a…